Did you hear? Ethereum ETF was fully approved yesterday and, while the initial response was a bit slow, we expect major growth for the rest of the year.

But both ETH and BTC optimism was expected, as we noted last week. So this week, we’re highlighting some of our best-performing traditional stocks so far this year.

Shining some light on 🔦 

• Old school wins: Our top-performing traditional stocks.

• Strong Prosus, dividend surges & soaring solar.

• Earnings calendar: Who’s reporting when.

• Stock update: Higgo’s Top 10 stock picks for 2024.

• Wealth hackers: 5 Credit mistakes to avoid.

• The update: All on the Money Matters app.

Our Top-Performing Traditional Stocks (So Far)

Crypto is performing well – both Ethereum and Bitcoin are in our top 5 this year (see Higgo’s Top 10 below). But many traditional stocks are performing very well, too.

Here’s what’s happening with our top 4 traditional performers so far:

1. 4Sight Holdings Ltd

While not everyone has seen the same level of returns we have; 4Sight’s definitely our top-performing traditional stock pick, having yielded a massive 60% growth year-to-date for us this week.

It shouldn’t be that surprising; the company’s focus on digital transformation talks to a big need in business right now, and its strategy of strategic acquisitions means it’s re-investing quite efficiently.

And you can see the impact of that in its growth – 4Sight’s earnings growth was 3 times that of the tech industry average over the last 5 years, 4 times in the last year alone.

2. On Holding AG

At 43.69% year-to-date, On Holding AG is gaining traction in the athletic footwear market so fast, that it’s starting to look like a strong competitor to industry giant Nike.

It’s been experiencing robust growth, with its first-quarter direct-to-consumer (DTC) sales surging by 49% year over year, to now make up 37% of the company’s total sales. 

Expanding brand awareness and strategic product launches have created impressive momentum, and it’s likely to keep up the double-digit growth – kind of reminds you of Nike in its early years, doesn’t it?

3. Brookfield Corp

Yielding near 21% growth for us this year so far, Brookfield is worth noting because it’s likely to do very well if US interest rates fall – which is pretty likely towards the end of the year.

See, the company’s portfolio includes significant holdings in interest-rate-sensitive segments such as real estate and infrastructure – both likely to benefit from rate cuts.

And, in general, Brookfield seems to have good long-term prospects, with a lot of respect for their likely next CEO.

Let’s talk about AMD…

AMD performed almost 21% up for us until about last week, dropping to just 5.35% this week. And while that’s most likely due to the interest in the AI chip space, there’s still reason to be excited for AMD this August.

They recently did a strategic acquisition of Silo AI, Europe's largest private AI lab – after earlier buys of Mipsology and Nod.ai – underscoring AMD’s commitment to leading in the AI space. And let’s not forget that both their next-generation high-performance chip launch and financial results are coming in about a week’s time.

Note: This is not financial advice; it is merely observations. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).

STOCKS AND ALL

📈 Naspers’ Strategic Investments: Naspers, alongside Prosus, is focusing on resources and construction to capitalise on mega investment trends. This strategic move aims to leverage high-growth sectors, positioning the company for significant future gains.

🛢️ Sasol’s Export Boost: Despite a dip in production, Sasol reported a 5% increase in coal exports. This growth highlights the company’s resilience and ability to capitalise on international demand, reinforcing its market position.

🔒 Sibanye’s Cyber Challenge: Platinum giant Sibanye faced a cyberattack affecting its systems. The company is working to mitigate the impact and secure its operations.

⚒️ Amplats’ Cost-Cutting Measures: Anglo American Platinum (Amplats) is cutting jobs to save costs amid plans for a secondary UK listing. The company also reported a sharp profit decline due to lower prices, highlighting the challenges in the commodities market.

💡 Capitec’s Tech Hurdles: Last week Friday’s Crowdstrike-Microsft PC outage hit Capitec pretty hard, affecting everything from ATMs to client transactions. The incident underscores the critical need for reliable technology infrastructure in the banking sector.

📊 Karooooo’s Dividend Surge: Karooooo, the owner of Cartrack Holdings, saw its share price rise after declaring a dividend post Q1 results. Investors are optimistic about the company’s future performance and strategic direction.

💼 Berkshire’s Strategic Moves: Berkshire Hathaway sold around $1.48 billion in Bank of America shares, indicating a strategic reallocation of its investment portfolio.

🌞 First Solar’s Potential: First Solar is being highlighted as a potential multibagger in the solar energy sector. With increasing demand for renewable energy solutions, First Solar’s strong market position makes it a top contender for long-term growth.

UPCOMING EARNINGS REPORTS

These companies are expected to deliver earnings reports in the next few weeks:

• Next Era Energy: 24 July 2024

• AMD: 30 July 2024

• First Solar: 30 July 2024

• Albemarle Corporation: 31 July 2024

• ABinBev: 1 August 2024

• Air Products: 1 August 2024

• Apple: 1 August 2024

• Amazon.com: 1 August 2024

Get Your Taxes Filed and Done

It’s tax season and the FinMeUp team is available to help you get yours done.

To book our assistance, please reply to this email or connect with us on this WhatsApp link and we’ll be happy to assist.

(Powered by registered FSP: No. 51310).

WEALTH HACKER’S KIT

5 Credit Mistakes to Avoid

When it comes to credit, few things trump your credit score.

It can determine your loan terms and even your interest rate. 

Financially speaking, it’s the most common tool for assessing how reliable and responsible you are, ultimately impacting your ability to earn.

This is why maintaining a good credit score – avoid these pitfalls to ensure you improve and keep up your good credit score…

1. Pay your bills on time 

Your payment history is the most important factor in the credit scoring formula, and even one late payment can send it crashing. Avoid this by setting up debit orders or scheduled payments on your online banking profile.

2. Pay as much as possible on your credit card 

Making the minimum payment on your credit card might prevent the card issuer from reporting a late payment, but any remaining balance will begin to accrue interest. Try to pay the full balance monthly to avoid paying interest.

3. Don’t max out your credit cards 

Carrying a balance raises your credit utilisation ratio, which measures the amount of credit you use each month versus the amount available to you. Ideally, you should keep this under 30%. A higher credit utilisation ratio indicates you may be living beyond your means, and it will negatively impact your credit score.

4. Don’t apply for new credit often 

One common mistake people make when trying to improve their credit health is applying for too many new loans too quickly. Each time you apply for a new loan, you impact your credit score adversely. Instead, try applying for one type of loan at a time.

5. Check your credit report

One of the best ways to maintain good credit health is to check your credit report often. In South Africa, every consumer is entitled to at least one free credit report per year. You can register on TransUnion or ClearScore for your free report.

THE PEOPLE HAVE SPOKEN

What are you most excited about for the rest of 2024? 

🟩🟩🟩🟩🟩🟩 💸 An SA interest rate cut – the sooner the better. (47%)

🟨🟨⬜️⬜️⬜️⬜️ 🗳️ How the US election affects other asset classes. (21%)

🟨🟨🟨⬜️⬜️⬜️ 💪 New investment opportunities through tokenisation. (27%)

⬜️⬜️⬜️⬜️⬜️⬜️ 🔗 What blockchain can do if we separate it from the crypto stigma. (5%)

What you said…

Thanks for sharing, Esaluya! It's never too late to start. Every step you take now is setting you up for a brighter financial future. What’s more, your journey can inspire others, so keep going!

See you next week Wednesday as we greet July and prepare for the launch of Gold coming up in August.